Consumers Binge Despite Higher Interest Rates, And The Fed Watches Them Nervously

Retail sales in March increased by 0.7% seasonally adjusted, with a year-over-year jump of 4.0%. Total retail sales jumped 10.1% in March from February to $712 billion. Ecommerce, food services, and general merchandise retailers were the biggest drivers of growth.

U.S. Retail Sales Rack Up Solid March Numbers

U.S. Retail sales smashed expectations in March, with total sales up 0.7% and ex-autos up 1.1%. Non-store retailers and bars and restaurants saw the biggest year/year increase. Five out of the 10 consumer-related industries have turned positive. The latest retail sales data reflects strong consumer buying.

U.S. Household Spending Holds Firm

Retail sales beat all expectations. US retail sales rose a very robust 0.7% month-on-month in March versus 0.4% expected. With jobs, inflation, and activity all beating expectations, the Federal Reserve is in no position to cut interest rates. We expect spending and inflation to slow, but the Fed won't be contemplating rate cuts.

Group 1 Makes Power Move in UK Market with Inchcape Auto Dealerships Buy Out

Group 1 Automotive, Inc. Disclosed a deal to buy the U.K. Automotive retailing business and related owned real estate from a subsidiary of Inchcape PLC for around $439 million. The buyout is expected to close in the third quarter of 2024. Investors can gain exposure to the stock via Northern Lights Fund Trust.

Weekly Report: what happened at PSCD last week (0408-0412)?

3 Reasons To Consider ODP Corporation

The ODP Corporation's stock has underperformed its peers in the small-cap discretionary space over the past 6 months. Topline dynamics in H2 could pick up, and the company is poised to grow at a CAGR of 10% over the next three years. ODP has been consistently generating annual free cash flow of over $200m. The company has a low-cost business model and is a good value at a forward P/E of 7.43.

Top Seeking Alpha Quant picks in S&P 500 Consumer Discretionary sector ahead of earnings

Consumer Discretionary Select Sector SPDR Fund ETF (XLY) has underperformed the S&P 500 in the past 12 months. The consumer discretionary sector had the largest net selling and was among the worst-performing sectors last week. Goldman Sachs expects strong 1Q EPS growth in the consumer discretionary industry. The sector's growth has been slower than other industries due to inflation and interest rate spikes.

Weekly Report: what happened at PSCD last week (0401-0405)?

Weekly Report: what happened at PSCD last week (0325-0329)?

Resurging Corporate Profits Show Inflationary Pressures Are Reheating After Lull: Corporate Profits By Major Industry

Home Market Outlook Economy Analysis Resurging Corporate Profits Show Inflationary Pressures Are Reheating After Lull. Corporate pre-tax profits in all non-financial domestic industries combined jumped by 5.6% in Q4 from Q3. The spike in profitability in inflationary times is a sign that companies hiked prices much faster than their costs.

What Shifting Expectations About The Fed's Next Move Could Mean For Markets

Home Investing Strategy Portfolio Strategy What Shifting Expectations About The Fed's Next Move Could Mean For Markets. Anna Castro, Managing Director and Head of Retail Asset Allocation at TD Asset Management says what's important isn't the timing of a rate cut, but whether you remain invested. Inflation, interest rates and the markets.

Weekly Report: what happened at PSCD last week (0318-0322)?

Invesco SmallCap Consumer Discretionary ETF declares quarterly distribution of $0.3292

Watching For A Weakening Consumer

The consumer accounts for nearly 70% of U.S. GDP. Since September of last year the overall level of retail sales has stalled. Credit card debt has increased significantly since the pandemic ended. Charge-offs and delinquency in credit card debt is reaching levels seen at the start of prior recessions. The elevated charge-off rate may be a canary in the coal mine.

Weekly Report: what happened at PSCD last week (0311-0315)?

Financials ranked first again in BofA’s small-cap quantitative sector rankings, Utilities last.

Financials ranked first again in BofA’s small-cap quantitative sector rankings, Utilities last. Consumer discretionary, real estate, and materials saw the biggest improvements in ranks, communication services ranked last. Bofa Securities published their small-sized quantitative sector ranks.

Weekly Report: what happened at PSCD last week (0304-0308)?

Weekly Report: what happened at PSCD last week (0226-0301)?

Consumers Will Continue Spending In 2024

Six Flags' Rollercoaster Quarter: Earnings Miss Targets, But '2024 Passes Are Ahead Of Last Year,' CEO Says

Six Flags Entertainment Corp reported fourth-quarter sales growth of 5% year-on-year to $293 million. The theme park company missed the analyst consensus of $297.5 million. Six Flags reported 4.3 million guests in the quarter, a 6% Y/Y increase.